DOCSLIB.ORG

1 Islamic Business Ethics: Principles and Contemporary Applications (Fall 2017) Umar F. Moghul Following the Global Financ

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
1 Islamic Business Ethics: Principles and Contemporary Applications (Fall 2017) Umar F. Moghul Following the Global Financ Islamic Business Ethics: Principles and Contemporary Applications (Fall 2017) Umar F. Moghul Following the global financial crisis of 2007-08, we are witnessing expanding socially and ethically conscious business initiatives. Contemporary Islamic banking and finance is a rapidly growing subset of these initiatives in many respects. In this course, we will consider the application of Islamic ethics, spirituality, and jurisprudence to earning, consuming, and investing, and in building community infrastructure, both tangible and intangible. In particular, we will study stakeholder theory, concepts of sustainability, environmental consciousness and animal welfare, labor, and halal markets. Further, we will examine contemporary Islamic finance vehicles, particularly Islamic home finance in the U.S., the landmark Dow Jones Islamic Market Indexes Fatwa, and designing community impact through capital/ opportunity generation. Finally, we will explore debates of form and substance, maslahah (welfare) and the objectives of the Shari’ah, and responsibility and impact throughout the course. Please note that this is an online course. I can be reached on email at [email protected] or +1 646 821 5837. I will make myself available upon request with advance notice. I do hope we have the chance to meet in person. Required Texts: Umar F. Moghul, A Socially Responsible Islamic Finance: Character and the Common Good (Palgrave-MacMillan, February 2017). Other readings will be made available at the Hartford Seminary Library or online. Recommended Readings: Recommended readings are organized following the next section. 1 Course Schedule Please note: 1. You should complete the readings in the order listed. 2. All times given refer to U.S. Eastern time. Session 1: Introductory Matters (September 5 – September 10) Intended Outcomes: The ability to describe contemporary Islamic Finance industry itself and in the context of the global responsible financial markets. Required Readings: 1. Hossein Askari, et. al., Globalization and Islamic Finance (2010) [hereinafter Globalization and Islamic Finance], p. 47-52; 59-68; 68-77; 80-93; 94-111; 111-119. 2. Benjamin J. Richardson, Socially Responsible Investment Law: Regulating the Unseen Polluters (2008), Pages 43-73. Session 2: Earning and Consuming, Ethics and Economics (September 11 – 16) Intended Outcome: Understanding some Islamic ethics and spiritual notions relating to earning and consuming. Required Readings: 1. Umar F. Moghul, A Socially Responsible Islamic Finance, Chapter 1. 2. Abu Hamid al-Ghazali, The Book of The Proprieties of Earning and Living (Kitab Adab al-Kasb wa-al-Ma’ash), Translated by Adi Setia, Pages, 107-117. 2. Muhammad Hashim Kamali, The Right to Education, Work, and Welfare in Islam (2010), Pages 96-121. Session 3: Stakeholder Considerations (September 17 – 24) *****SEPTEMBER 23: QUIZ #1***** Intended Outcome: The ability to identify stakeholders with either a right or obligation and contextualize them within a economic setting. 2 Required Readings: 1. Askari, et. al., Globalization and Islamic Finance, Pages 11-25. 2. Rafik Beekun and Jamal Badawi, Balancing Ethical Responsibility among Multiple Organizational Stakeholders: The Islamic Perspective, Journal of Business Ethics Vol 60, p. 131-145 (2005). 3. Musa Furber, Obligations to Future Generations: A Shari’ah Perspective, available at http://www.tabahfoundation.org/en/research/activities/papers/?action=view&id=27. Session 4: Substantive and Procedural Principles (September 25 – October 4) Intended Outcome: The ability to explain certain noteworthy Islamic financial-legal-ethical principles. Required Readings: Topic 1 – Riba: 1. Historic Judgment on Interest (1992) 44 PLD (FSC) 1 (December 7, 1991) You are required to read ONLY paragraphs: 39-42; 49-54; 58-61;66-72; 90-99; 107-112; 116-126; 135-152; 161-169; and 185-188, available at http://www.albalagh.net/islamic_economics/riba_judgment.shtml. 2. Muhammad Ayub, Understanding Islamic Finance (2007), p. 89-90; 81-82; 159- 167. Topic 2 - Gharar: 1. Kamali, Islamic Commerical Law: An Analysis of Futures and Options (2000), p. 84-93; 95-96. 2. Mohammed Burhan Arbouna, The Combination of Contracts in Shari'ah: A Possible Mechanism for Product Development in Islamic Banking and Finance, Thunderbird Int'l Bus. Review, Vol. 49(3), 341-369 (May - June 2007). Session 5: The DJIMI Fatwa: Opening Markets (October 5 – October 9) Intended Outcome: The ability to explain the actual and potential role of fatwa and their potential impact, and to understand a contemporary view of Islamic legal-ethics towards public equities. Required Reading: 3 1. The Dow Jones Islamic Market Indexes, Statement by the Shari’ah Supervisory Board. 2. Moghul, A Socially Responsible Islamic Finance, Chapter 4. Session 6: Three Nominate Contract Forms (October 10 – October 18) Intended Outcome: The ability to understand three basic contract forms, as classically envisioned and as applied contemporarily in structuring transactions and products. Required Readings: Topic 1 - The Contract of Murabaha (Cost Plus Mark-up Sale): 1. Ayub, Understanding Islamic Finance, p. 213-240. 2. Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Shari’ah Standards No. 8, Murabahah to the Purchase Orderer. *Please note that the entire work of AAOIFI Standards is available at the UConn Law Library. Topic 2 - The Contract of Ijara (Lease): 1. Ayub, Understanding Islamic Finance, p. 279-306. 2. AAOIFI, Shariah Standards No. 9, Ijarah and Ijarah Muntahia Bitamleek. Topic 3 - The Contract of Shirkah (Partnership): 1. Ayub, Understanding Islamic Finance, p. 307-345. 2. AAOIFI, Shari'ah Standards No. 12. Sharika (Musharaka) and Modern Corporations. Session 7: Wholesale American Islamic Finance (October 19 – October 28) Intended Outcomes: The ability to describe contemporary wholesale Islamic finance structures within the context of the laws and customs in which they take place and to consider the same in light of Islamic ethics/ spiritual concepts. Required Readings: 1. Umar F. Moghul, Separating the Good from the Bad: Developments in Islamic Acquisition Financing, American University International Law Review, Vol. 23, No. 4 (2008). 4 2. Umar F. Moghul, No Pain, No Gain: The State of the Industry in Light of an American Islamic Private Equity Transaction, Univ. Chicago J. Int'l Law (Winter 2007). Session 8: Contemporary Islamic Home Finance in America (October 29 – Nov 3) Intended Outcomes: The ability to describe U.S. home finance structures and consider their merits with reference to Islamic ethics – and ethics and morality generally. Required Readings: 1. Michael McMillen, Islamic Home Purchase Financing: A Conceptual Overview, available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2177255. 2. Moghul, A Socially Responsible Islamic Finance, Chapter 5. Session 9: Halal Markets (November 4 – November 9) Intended Outcomes: To appreciate the ethical and spiritual – and business – concerns arising in the development of halal globally. Required Readings: 1. Thomson Reuters, State of the Islamic Economy Report 2014, Pages 40-75; 120- 157, available for free download at https://www.zawya.com/ifg- publications/Thomson_Reuters_State_of_the_Global_Islamic_Economy_Report_ 20142015-251114170832G/. If you have difficulty, please let me know. 2. Jonathan Wilson, Shaping the Halal Into a Brand, Journal of Islamic Marketing, Vol. 1., No. 2 (2010), Pages 107-123. Session 10: Environmental Consciousness (November 10 – November 17) *****Quiz #2: November 18-19***** Intended Outcomes: To intelligently discuss whether Islamic finance principles and the contemporary Islamic finance industry are socially responsible. Required Reading: 5 Moghul, A Socially Responsible Islamic Finance, Chapter 3. Session 11: Labor & Welfare (November 27 – December 1) Intended Outcomes: To appreciate the spiritual place of work in Islam and the rights and obligations of workers. Required Reading: 1. Adnan Zulfiqar, Religious Sanctification of Labor Law: Islamic Labor Principles and Model Provisions, 9 Univ. of PA Journal of Labor & Employment Law 421 (Winter 2007). 2. Muhammad Hashim Kamali, The Right to Education, Work and Welfare in Islam (Fundamental Rights and Liberties in Islam Series) by Mohammad Hashim Kamali, Pages 112-134, 139-147, 191-209. Session 12: Impact: Waqf & Community Development (December 2 – December 8) Intended Outcomes: To design solutions for the financial sustainability of community and community institutions. Required Readings: 1. Peter Senge, The Fifth Discipline, The Art & Practice of the Learning Organization (1990), Pages 68-91 (Chapter 5, entitled ‘A Shift of Mind’). 2. Randi Deguilhem, The Waqf in the City, in Salma K. Jayyusi with Renata Holod, Attilio Petruccioli and André Raymond, eds., The City in the Islamic World (2008), Pages 923-950. 3. Kamali, The Right to Education, Work and Welfare in Islam 232-242, Session 13: Reimagining Islamic Finance (December 9 – December 15) Intended Outcomes: To assess contemporary financial methods, Islamic and otherwise, in light of Islamic spirituality and ethics – and in light of Islamic law – and consider practical solutions thereto. Required Readings: 6 1. Muhammad Taqi Usmani, Sukuk and Their Contemporary Applications (trans., Yusuf T. DeLorenzo), available at http://www.kantakji.com/media/7747/f148.pdf. 2. Al-Ghazali, The Lawful and the Unlawful, Pages xxvi (paragraph beginning “Let us…” – xxviii (until paragraph ending with “transparency.”) 3. Moghul, A Socially Responsible
Load more

Recommended publications
  • The Development of the Global Sukuk Market from an Indexing Perspective
    Index Education The Development of the Global Sukuk Market from an Indexing Perspective The global sukuk market has enjoyed tremendous growth since 2013. As Contributor measured by the Dow Jones Sukuk Total Return Index and the S&P Global Jason Giordano High Yield Sukuk Index, the U.S. dollar-denominated sukuk market Director experienced a compound annualized growth rate of nearly 18%, driven by Fixed Income Product increased issuance from sovereigns and supranationals, as well as strong Management investor demand for Shariah-compliant securities. Historically, the majority [email protected] of issuance has come from Saudi Arabia and Malaysia; however, the past three years have witnessed an increasing number of issuers from new markets, as well as a deeper and broader investor base. Exhibit 1: Growth of the Global Sukuk Market 100 90 80 70 60 USD Billions USD 50 40 30 20 October 2013 October 2014 October 2015 October 2016 October 2017 October 2018 October 2019 October Dow Jones Sukuk Index (Investment Grade) S&P Global High Yield Sukuk Index Source: S&P Dow Jones Indices LLC. Data as of October 2019. Past performance is no guarantee of future results. Chart is provided for illustrative purposes and reflects hypothetical historical performance. Please see the Performance Disclosure at the end of this document for more information regarding the inherent limitations associated with back-tested performance. This article was first published in Islamic Finance news Investors Report 2020. Register to receive our latest research, education, and commentary at on.spdji.com/SignUp. The Development of the Global Sukuk Market from an Indexing Perspective February 2020 The recent growth of the global sukuk market is likely to accelerate, as GCC issuers are poised to refinance in order to fund increasing deficits and The global sukuk as new entrants continue to come to market.
    [Show full text]
  • New Model of Salam Sale for Agricultural Development Finance
    Research Article New Model of Salam sale for Agricultural Archives of Development Finance Al Siddig Talha M Rahma* Agriculture Imam Mohammed Ibn Saud Islamic University, College of Economics &Business administration, Kingdom of Saudi Arabia Research and Abstract Technology (AART) The new financial economic model derived from the traditional Salam situation. This scenario is based on the idea behind the treatment of risks facing traditional Salam applications, which includes high rates of inflation and the exit of financing from its approved aspects, which cannot enable the farmer or producer to disburse this monetary benefit in the Volume 1 Issue 3, 2020 fields of agriculture. Then Banks and financial institutions lose huge amounts of money that are wasted. In addition, lack of understanding of the process of obtaining loans between farmers and producers, this new model can solve many problems Article Information and risks in the classic sales of Salam, which rely mainly on granting cash loans. Received date: May 28, 2020 Published date: July 07, 2020 The paper works to monitor and limit the risks posed by the traditional Salam and pushes that agricultural financing loses. It is most important input to financing and then corrects the paper and it relies on this innovative model, which aims to provide the necessary inputs to farmers and producers. This paper attempts to solve this problem by providing inputs directly *Corresponding author by updating production through regular and timely operation of modern scientific inputs. Al Siddig Talha M Rahma, Imam Mohammed Ibn Saud Islamic University, The study identified the structural equation model to analyze the results of the analysis of descriptive statistical data, College of Economics & Business which resulted in the preferred cash financing for farmers as a desirable situation.
    [Show full text]
  • The Law of Islamic Finance in the United Kingdom: Legal Pluralism and Financial Competition
    Ercanbrack, Jonathan G (2011) The Law of Islamic Finance in the United Kingdom: Legal Pluralism and Financial Competition . PhD Thesis, SOAS (School of Oriental and African Studies) http://eprints.soas.ac.uk/13598 Copyright © and Moral Rights for this thesis are retained by the author and/or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This thesis cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder/s. The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. When referring to this thesis, full bibliographic details including the author, title, awarding institution and date of the thesis must be given e.g. AUTHOR (year of submission) "Full thesis title", name of the School or Department, PhD Thesis, pagination. THE LAW OF ISLAMIC FINANCE IN THE UNITED KINGDOM: LEGAL PLURALISM AND FINANCIAL COMPETITION BY JONATHAN G. ERCANBRACK SCHOOL OF LAW SCHOOL OF ORIENTAL AND AFRICAN STUDIES (SOAS) UNIVERSITY OF LONDON THESIS SUBMITTED FOR THE PHD IN LAW 15 SEPTEMBER 2011 1 DECLARATION FOR PHD THESIS I have read and understood regulation 17.9 of the Regulations for students of the School of Oriental and African Studies concerning plagiarism. I undertake that all the material presented for examination is my own work and has not been written for me, in whole or in part by any other person. I also undertake that any quotation or paraphrase from the published or unpublished work of another person has been duly acknowledged in the work which I present for examination.
    [Show full text]
  • Emerging Trends in Sukuk Offerings
    Chicago Journal of International Law Volume 7 Number 2 Article 5 1-1-2007 New Horizons for Islamic Securities: Emerging Trends in Sukuk Offerings Ayman H. Abdel-Khaleq Christopher F. Richardson Follow this and additional works at: https://chicagounbound.uchicago.edu/cjil Recommended Citation Abdel-Khaleq, Ayman H. and Richardson, Christopher F. (2007) "New Horizons for Islamic Securities: Emerging Trends in Sukuk Offerings," Chicago Journal of International Law: Vol. 7: No. 2, Article 5. Available at: https://chicagounbound.uchicago.edu/cjil/vol7/iss2/5 This Article is brought to you for free and open access by Chicago Unbound. It has been accepted for inclusion in Chicago Journal of International Law by an authorized editor of Chicago Unbound. For more information, please contact [email protected]. New Horizons for Islamic Securities: Emerging Trends in Sukuk Offerings Ayman H. Abdel-Khaleq* and Christopher F. Richardson** I. INTRODUCTION Shari'ah-compliant finance and investment products are fast becoming part of the mainstream of the world economy as Muslim money is increasingly integrated into global capital markets and, generally, the commercial finance system. Once largely restricted to the Middle East and Southeast Asia, Islamic finance and investment now permeate markets throughout Europe, Asia, and even the US. As a number of countries in the Islamic world, emboldened by sustained increases in commodity prices and higher levels of foreign direct investment, look beyond traditional borders for investment opportunities, new forms of Islamic finance and investment have emerged. Perhaps the most significant recent development has been the emergence of sukuk (which roughly translates to "certificates")-in essence an asset-backed security structured in compliance with the precepts of Shari'ah, somewhat similar to a trust certificate or bond.
    [Show full text]
  • The Uses and Misuses of Commodity Murabaha: Islamic Economic Perspective
    MPRA Munich Personal RePEc Archive The Uses and Misuses of Commodity Murabaha: Islamic Economic Perspective Nidal Alsayyed The Global University In Islamic Finance (INCEIF)- Malaysia 10. January 2010 Online at http://mpra.ub.uni-muenchen.de/20262/ MPRA Paper No. 20262, posted 27. January 2010 07:11 UTC THE GLOBAL UNIVERSITY IN ISLAMIC FINANCE (INCEIF) The Uses and Misuses of Commodity Murabaha: Islamic Economic Perspective NIDAL A ALSAYYED PhD Researcher Islamic Economics, Banking, and Finance http://groups.google.com/group/nidal_islamic-finance January, 2010 Commodity Murabaha: Uses and Misuses 2009 The Uses and Misuses of Commodity Murabaha: Islamic Economic Perspective INCEIF: The Global University in Islamic Finance, Kuala Lumpur E-mail: [email protected] Telephone: + 6017 2559 700 (HP) Profile: NIDAL ALSAYYED (http://ideas.repec.org/f/pal399.html) --------------------------------------------------------------------------------------------------------------------- ABSTRACT Some exciting Economical developments have taken place in the area of Islamic finance during the preceding two years. There has been a fast expansion in its market share, diversification of products picked up pace and the rapid globalization of the services ensures their future expansion. Commodity murabahah is one of the most commonly used financing contracts in Islamic banking. But of no less consequence may prove, the lurch one finds commodity murabahah in at the close of 2008 (Hasan 2009)1. Commodity Murabaha is clearly the Islamic treasurer’s funding product of choice, as it is flexible enough to facilitate many structures for financing, hedging, and currency exchanging. It is time to apply the shari'ah objective of “sa’dd-aldharai” that closes the potential avenues for outwitting the shari’ah objectives and spirit .
    [Show full text]
  • Sukuk in Focus the Necessity for Global Common Practices Deloitte Islamic Finance Insights Series Leading by Engaging
    Sukuk in focus The necessity for global common practices Deloitte Islamic Finance Insights Series Leading by engaging Sukuk in focus | The necessity for global common practices Contents 04 05 06 07 Foreword from Deloitte Foreword from ISRA Acknowledgments Executive summary 09 10 12 17 Introduction: Strategic Shariah governance and Practice and market Regulatory capabilities and practice approach sustainability institutions market development 40 41 Sustainability in focus Thinking further ahead: Practice and policy considerations 03 Sukuk in focus | The necessity for global common practices Foreword from Deloitte Dear Islamic finance practitioners, For Islamic finance practitioners, this will require re-thinking and re-modelling of For nearly two decades, many financial their governance frameworks and regulators and investment institutions business operating channels. Most around the world have been committed importantly, practitioners need to harness to strengthening practices in Islamic their Islamic finance corporate culture capital markets, and leverage standards and embrace a ‘back to basics’ approach for Sukuk as a key investment asset class. and adhere to designing products and Embedded within this has been an services in line with the ‘equity-base’ equally strong commitment from industry differentiator to fund real economy standards setters and other business projects. supporting institutions (BSIs) to address practice differences and inconsistency. Clearly, this can be streamlined in the first place, with Maqasid Al Shariah, which It is with great pleasure that we produce reflects values and practices of social and Dr. Hatim El Tahir, FCISI this report, and put forward our thoughts economic inclusion and sustainable Director, Islamic Finance Group on a number of business practices community development.
    [Show full text]
  • Resolutions of the Shariah Advisory Council of the SC
    RESOLUTIONS OF THE SHARIAH ADVISORY COUNCIL OF THE SECURITIES COMMISSION MALAYSIA 31 December 2020 Resolutions of the Shariah Advisory Council of the Securities Commission Malaysia Resolutions of the Shariah Advisory Council ii of the Securities Commission Malaysia CONTENTS PART A 2 INTRODUCTION AND OBJECTIVES PART B 3 RESOLUTIONS OF THE SHARIAH ADVISORY COUNCIL OF THE SECURITIES COMMISSION MALAYSIA PRINCIPLES AND CONCEPTS OF MUAMALAT IN THE ISLAMIC CAPITAL MARKET 1. Ta`widh 4 2. Bai` `Inah (i) Implementation of Bai` `Inah 8 (ii) Implementation of Resolution on Bai` `Inah in Sukuk Structuring 12 3. Ibra’ 14 4. Wa`d and Muwa`adah 16 5. Tawarruq 20 6. `Aqd al-Tawrid 21 ISLAMIC CAPITAL MARKET PRODUCTS 7. Nature of Shares 25 8. Crude Palm Kernel Oil Futures Contract (FPKO) 26 9. Single Stock Futures (SSFs) Contract 27 10. Islamic Business Trusts 29 11. Islamic Exchange-Traded Fund Based on Gold and Silver 31 12. Stapled Securities 34 Resolutions of the Shariah Advisory Council iii of the Securities Commission Malaysia 13. Issuance of Redeemable Convertible Unsecured Islamic Debt 35 Securities (RCUIDS) with Free detachable Warrants Based on Shariah Principle of Murabahah (via Tawarruq Arrangement) 14. Islamic Securities Selling and Buying-Negotiated Transaction (iSSB- 39 NT) Model 15. Islamic Real Estate Investment Trusts (Islamic REIT) 40 SHARIAH ISSUES IN RELATION TO THE ISLAMIC CAPITAL MARKET TYPES OF IJARAH 16. Ijarah Mudhafah Ila Mustaqbal 54 17. Ijarah Mawsufah Fi Zimmah 56 18. Ijarah Muntahiyah Bi Tamlik 58 19. Sublease 60 20. Implied Sublease 61 IJARAH ASSET 21. Asset and Usufruct as Mahal al-`Aqd in Ijarah Contract 63 22.
    [Show full text]
  • 1 the Practice of Murabaha
    THE PRACTICE OF MURABAHA: A COMPARATIVE STUDY BETWEEN BANK MUAMALAT INDONESIA AND ALBARAKA BANK IN SOUTH AFRICA Thesis Submitted to the Shari’a and Law Faculty in Partial Fulfillment of the Requirements for the Degree of Strata 1 By: Shiraaj Buziek 105046103559 ISLAMIC ECONOMICS SHARI’A AND LAW FACULTY SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY JAKARTA 2011 1 2 THE PRACTICE OF MURABAHA: A COMPARATIVE STUDY BETWEEN BANK MUAMALAT INDONESIA AND ALBARAKA BANK IN SOUTH AFRICA Thesis Submitted to the Shari’a and Law Faculty in Partial Fulfillment of the Requirements for the Degree of Strata 1 By: Shiraaj Buziek 105046103559 Under the Guidance Advisor DR. Phil. JM. Muslimin, MA NIP. 150 295 489 ISLAMIC ECONOMICS SHARI’A AND LAW FACULTY SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY JAKARTA 2011 3 PENGESAHAN PANITIA UJIAN Skripsi berjudul “The Practice Of Murabaha: Comparative Study Between Bank Muamalat Indonesia and Albaraka Bank In South Africa” telah diujikan dalam Sidang Munaqasyah Fakultas Syariah dan Hukum Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta pada 5 April 2011. Skripsi ini telah diterima sebagai salah satu syarat memperoleh gelar Sarjana Ekonomi Syariah (SE.Sy) pada Program Studi Muamalat (Ekonomi Islam). Jakarta, 5 April 2011 Mengesahkan Dekan, Prof.Dr.H. Muhammad Amin Suma, SH, MA, MM NIP. 195505051982031012 PANITIA UJIAN 1. Ketua : Dr.H.A.Mukri Adji, M.A NIP. 195703121985031003 2. Sekretaris : Mu‟min Roup, S.Ag., MA NIP. 150281979 3. Pembimbing : Dr. Phil JM Muslimin, MA (…………..) NIP. 150295489 4. Penguji I : Dr. H. Anwar Abbas, M.Ag, MM NIP. 195502151983031002 5. Penguji II : Drs. Noryamin Aini, MA NIP. 196303051991031002 4 IN THE NAME OF ALLAH THE MOST BENFEICIENT THE MOST MERCIFUL 5 DECLARATION I declare that the thesis “The Practice Of Murabaha: Comparative Study Between Bank Muamalat Indonesia and Albaraka Bank In South Africa” is hereby submitted to the Shari‟ah and Law Faculty at UIN Syarif Hidayatullah State Islamic University of Jakarta in Partial Fulfillment of the Requirements for the Batchelors Degree.
    [Show full text]
  • Sukuk Bond: the Global Islamic Financial Instrument
    Munich Personal RePEc Archive Sukuk Bond: The Global Islamic Financial Instrument Shaikh, Salman and Saeed, Shan 1 November 2010 Online at https://mpra.ub.uni-muenchen.de/26700/ MPRA Paper No. 26700, posted 16 Nov 2010 05:48 UTC SUKUK BOND: The Global I slamic Financial I nstrument Salman Ahmed Shaikh1 & Shan Saeed2 Abstract Global financial markets are volatile right now and will remain so for the next 2-years. Equity markets are shaky. Investors risk appetite is suddenly moving to commodities. Bond market is precarious as Sovereign debt risk goes high. Global economy is slowly moving into recession which will be either U or W-Shaped. Recovery figures are questionable and are creating doubts among investors. So, where are we heading towards? As we navigate through treacherous times, Islamic financial market provides a new hope without speculation and exploitation of resources. The emergence of Sukuk Islamic Bond in the financial markets heralds a new era which can provide much needed financial stability and mitigation of risk in these arduous times. With advent of Sukuk in the financial world, the market players have got a new option to invest into this asset which hold considerable value and benefit for all. This bond promises to all investors an equitable return which is justifiable and above all safe for the strategic investment purpose. 1. Background Global financial markets are volatile right now and will remain so for the next 2-years. Equity markets are shaky. Investors risk appetite is suddenly moving to commodities. Bond market is precarious as Sovereign debt risk goes high.
    [Show full text]
  • Sovereign Islamic Sukuk and the Economic Development: a Case Study of Jordan
    European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.8, No.32, 2016 Sovereign Islamic Sukuk and the Economic Development: A Case Study of Jordan Ghassan Salem Altaleb 1 Abdullah Yusri Alkhatib 2 1. Professor, Dean of Faculty of Business and Finance, Department of Islamic Banks, World Islamic Science and Education University 2. PhD. Student, Department of Islamic Banks, Faculty of Business and Finance, World Islamic Science and Education University Abstract The importance of Islamic sukuk, especially sovereign Islamic sukuk (which are issued by the government) for a country as Jordan that needs to develop projects and finance these projects is a very vital issue. Jordan does not have enough economic resources, but it can rely on national savings and use them effectively, rather than relying on foreign financial aids that represent a burden on the national economy and increase in external indebtedness, but all of that does not deny the issuance of these sukuk represents new financial obligations on the government if these sukuk are directed to meet the public common of Jordan’s needs in a time that requires sukuk to be issued to the existence of real assets, not cash, and here we highlights that the most important question which is do we have the ability to find real and new assets so that we can benefit from the issuance of these sukuk? Keywords: Islamic Sukuk, Economic Development, Sovereign Financing, and Jordan. Introduction Islamic sukuk are instruments to finance projects from an Islamic perspective, they open abroad way to innovate and create promised opportunities to improve Islamic banking and financing because of the relationship between Islamic finance and diverse investing instruments.
    [Show full text]
  • ISLAMIC FINANCE a Catalyst for Shared Prosperity?
    ISLAMIC FINANCE A Catalyst for Shared Prosperity? GLOBAL REPORT ON ISLAMIC FINANCE ISLAMIC FINANCE A Catalyst for Shared Prosperity? Copyright © 2016 by Islamic Development Bank Group Some rights reserved 1 2 3 4 20 19 18 17 This work is a product of the staff of The World Bank and Islamic Development Bank Group (IDBG) with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank and IDBG, their Boards of Executive Directors, or the governments they represent. The World Bank and IDBG do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank and IDBG concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank and IDBG, all of which are specifically reserved. Rights and Permissions This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http://creativecommons.org/licenses/by/3.0/igo. Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows: World Bank and Islamic Development Bank Group. 2016. Global Report on Islamic Finance: Islamic Finance: A Catalyst for Shared Prosperity.
    [Show full text]
  • Faculty of Islamic Economics and Business-State Islamic University Sunan Kalijaga Yogyakarta ISSN 2338-7920 (O) / 2338-2619 (P)
    Global Review of Islamic Economics and Business, Vol. 2, No.3 (2015) 172-196 Faculty of Islamic Economics and Business-State Islamic University Sunan Kalijaga Yogyakarta ISSN 2338-7920 (O) / 2338-2619 (P) The Awareness and Attitude towards Islamic Banking: A Study in Malaysia 2Buerhan Saiti 1Institute of Islamic Banking and Finance, International Islamic University Malaysia Address: Institute of Islamic Banking and Finance, IIUM, Jalan Gombak, 53100 Kuala Lumpur, Selangor, Malaysia. Tel.: + 603 20822800; fax: + 60 20947728. E-mail: [email protected] Abstract: The purpose of this study is to establish the level of awareness that Malaysians have in relation to the culture of Islamic banking, the attitude of Malaysians towards Islamic banking and a ranking of the bank selection criteria of Malaysians – and for each part of the study, to see if Muslim responses are different from non-Muslim responses. A sample of 150 Muslim and non-Muslim customers in Klang Valley was surveyed utilizing a questionnaire containing specific questions relating to the awareness and attitudes of Islamic banking to their ranking of the services required. It is found that the Muslims are more aware toward the culture of Islamic banking, and as consequences, be more aware of the meaning of fundamental terms used in Islamic banking and finance. In the case of the attitudes towards Islamic banks, there were many differences in attitudes between Muslims and non-Muslims in country with majority of Muslims. In the context of bank selection criteria, there are four significant differences among Muslims and non-Muslims such as, mass media advertising, credit on favorable terms, financial counseling and location near my place of work, while the others 18 criteria shows no significant difference.
    [Show full text]